Sigmaroc Plc · LSE:SRC
Sigmaroc — FY2022 Earnings Presentation
32 slides from Sigmaroc's earnings presentation, 2023
Slide 1: Annual Results 2022
Annual Results 2022 SigmaRoc plc SigmaRoc ANNUAL RESULTS 2022
Slide 2: Agenda
Introduction Agenda Overview Financials Strategy & operations Outlook Q&A SigmaRoc ANNUAL RESULTS 2022 2
Slide 3: An enhanced platform for long term value creation
Overview An enhanced platform for long term value creation DIVERSIFIED RESILIENT GROWTH PLATFORM End-market and geographic diversity has allowed us to focus on structural growth niches, while diversifying risk; AGILE STRUCTURE Decentralised operating model helped mitigate market disruptions on a sca
Slide 4: Delivering on our 5-year targets
Overview Delivering on our 5-year targets LFL REVENUE EBITDA MARGIN NET MARGIN EPS GROWTH 19% 19% 22% 8.03p TARGET: TARGET: TARGET: TARGET: 5% CAGR >20% >20% 8.0p CCR FCF ROIC LEVERAGE 87% £54m 11% 1.8x TARGET: TARGET: TARGET: TARGET: 95% >£50m >15% <2.0x Delivering consistently high levels of growt
Slide 5: Building a track record of value creation
B-MIX Overview 3.9X Building a track record of value creation CASTERS 3.9X JQG 7.6X ALLEN CONCRETE HARRIES GDH RIGHTCAST 6.3X 7.8X 1.0X 5.0X ACQUISITION RONEZ & EBITDA SIGMAGSY POUNDFIELD CCP CUVELIER CDH NORDKALK LA BELONGA MULTIPLE 6.8X 5.9X 4.4X 6.8X 6.9X 7.0X 9.0X FY22 REVENUE CAGR £538m >80% RE
Slide 6: Catalysts for continued growth
Overview Catalysts for continued growth We continue to INVEST 14 live projects and a continually developing pipeline of opportunities We continue to IMPROVE 40% average EBITDA growth pre-Nordkalk, 10% EBITDA growth already realised in Nordkalk We continue to INTEGRATE Expanding product offering to m
Slide 7: Financials
Financials SigmaRoc plc SigmaRoc ANNUAL RESULTS 2022
Slide 8: Significant progress, ahead of expectations
Financials Significant progress, ahead of expectations REVENUE EBITDA NET MARGIN EPS £538m £102m 21.8% 8.03p YoY: LFL: YoY: LFL: YoY: YoY: +98% +19% +106% +9% +140bps +49% CCR FCF ROIC NET DEBT 86.6% £54m 10.7% £194m YoY: YoY: YoY: Ex-IFRS 16: +27ppt +83% +310bps £177m Proven resilience and delivery
Slide 9: FY22 revenue bridge
Financials FY22 revenue bridge M&A: +66% +59% 160.0 £538M (2.0) -1% FX Organic growth: +32% +1% +21% +6% 17.7 3.7 58.0 West North +6% +5% 13.6 North East £272M 15.1 West North North West East West 98% revenue growth FY21 NW W NE NW W NE Forex FY22 Strong revenue growth driven by acquisitions and eff
Slide 10: Diversified end-markets
Financials Diversified end-markets FY22 REVENUE BY COUNTRY FY22 REVENUE BY MARKET FY22 REVENUE BY PRODUCT Other Residential Pulp, paper Dimension Stone Limestone Baltics and board (4%) powder Other Benelux Metals & mining Asphalt UK CI Sweden Environ- ment Ready-mix Chemical and concrete Finland Qui
Slide 11: FY22 EBITDA bridge
Financials FY22 EBITDA bridge M&A: +85% +73% £102M -1% FX Organic growth: +22% +12% 0% +14% West North East £49M +4% +4% North West North East North West West 106% EBITDA growth FY21 NW W NE NW W NE Forex FY22 Strong EBITDA growth driven by disciplined acquisitions and operational efficiency SigmaRo
Slide 12: Income statement
Financials Income statement Cost of sales % of revenue 2022 2021 2022 2021 Underlying £’M £’M 1% 2% Plant hire 4% 5% REVENUE 538 272 Maintenance 6% 6% D&A COST OF SALES (422) (210) PROFIT FROM OPERATIONS 116 62 8% 7% Distribution & selling ADMINISTRATIVE EXPENSES (46) (32) 13% 18% Labour NET FINANCE
Slide 13: FY22 net debt
Financials FY22 net debt 1.93x Leverage 1.77x £102M £7M -£11M -£41M -£164M -£58M £17M -£9M -£177M -£19M -£194M Opening Underlying Underlying Working TaxTax paid Net M&A Net finance Other Closing Debt IFRS 16 Net debt Opening net debt EBITDA EBITDA Working Capital paid Net CapEx CapEx M&A Net costs f
Slide 14: CapEx in 2022
Financials GROWTH CAPEX CapEx in 2022 Plant capacity increases, £4M Land Internalise £19M (£10M) purchases, haulage, £12M £2M £41M 87% Alt-fuel D&A conversions, £6M £1M £26M DIVESTMENTS Plant, £3M Non-core Vehicles, land sales, £2M Resource Divestments £5M Maintenance Resource Growth Divestments Net
Slide 15: 3-5 year targets set in 2021
Financials 3-5 year targets set in 2021 REVENUE EBITDA MARGIN NET MARGIN EPS GROWTH GROWTH c.5% CAGR >20% >20% c.75% FY22: FY22: FY22: FY20 to FY22: +19% LFL 18.9% 21.8% +78% CCR FCF ROIC LEVERAGE c.95% >£50m c.15% <2.0x FY22: FY22: FY22: FY22: 86.6% £54.3m 10.7% 1.77x Ahead of plan with medium-term
Slide 16: Strategy & Operations
Strategy & Operations SigmaRoc plc SigmaRoc ANNUAL RESULTS 2022
Slide 17: Three regions and ten platforms
Strategy & operations Three regions and ten platforms PPG NORTH-WEST NORTH-EAST HARRIES JOHNSTON >30 sites <40 sites CHANNEL ISLANDS >£130M revenue >€350M revenue BENELUX WEST BLUE STONE 7 sites >€100M revenue NORDKALK HIGH GRADE NORDKALK BALTICS NORDKALK QUICKLIME NORDKALK CENTRAL EUROPE Scope to e
Slide 18: We are a specialist materials group
Strategy & operations We are a specialist materials group with… Medium interm2021targets set Revenue growth c.3-5% Pricing power and entry 1.6Bn tonnes of mineral EBITDA margin barrier >20% Net margin Broad market exposure Structural growth niches >20% EPS growth c.75% A decentralised model Operatio
Slide 19: Sustainable organic growth supported by diversification
Strategy & operations Sustainable organic growth supported by diversification Growth niches Scale markets Horizontal integration Drivers Drivers Drivers Sustainability Macro trends Sustainability Production changes Demographics Extracting more value form existing assets Material availability Energy
Slide 20: Effective management driving performance
Strategy & operations Effective management driving performance North West West North East Channel Dimension PPG Wales England Benelux Quicklime Nordics Baltics Poland Operational levers Islands Stone Revenue growth ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Revenue diversification ✔ ✔ ✔ ✔ ✔ ✔ ✔ Operational improvement ✔ ✔ ✔ ✔
Slide 21: Improving every business, driving enhanced returns
Strategy & operations Improving every business, driving enhanced returns Group Total EBITDA improvement Group pre Nordkalk Nordkalk only Invested EBITDA +8% +20% Improved EBITDA +40% 2017-2022 2021-2022 2017-2022 EBITDA acquisition multiples Pre synergies Post synergies & improvements 6.9x 4.9x 6.9x
Slide 22: Focus on value creation with path to 15% ROIC
Strategy & operations Focus on value creation with path to 15% ROIC Illustrative net debt evolution absent Illustrative ROIC NET MARGIN 22% (180) (180) re-investment 25.0 25% 20% 20.0 87% 15.0 15% CCR +40% 10.0 10% 5.0 5% FCF £54m - 2022 2023 2024 2025 2026 2027 2021 2022 2023 2024 2025 2026 2027 20
Slide 23: Acquisitions to accelerate growth potential
Strategy & operations Acquisitions to accelerate growth potential High growth Geographic Product range niches penetration extension Aggregates Johnston Quarry Group North West UK Dimension stone ✔ ✔ ✔ Limestone powder 2022 RightCast North West UK Pre-cast concrete ✔ ✔ La Belonga Aggregates North Eas
Slide 24: ESG leadership
Strategy & operations ESG leadership E S G Strategic To develop Europe’s first fully net-zero CO2 quicklime JV with ArcelorMittal France production for use in steel production and other ✔ ✔ applications Partnership with Aqualung Carbon capture compact patented membrane UK technology that is easily s
Slide 25: Greenbloc: Significant growth
Strategy & operations Greenbloc: Significant growth Revenue on Greenbloc products Greenbloc in numbers 23x 22% …of PPG’s revenues in 2022 Product range extension Launch of Greenbloc 41% Geographic …of PPG’s major infra. projects completed in 2022 expansion up to 80% 2020 2021 2022 …of CO2 reduction
Slide 26: Outlook
Outlook SigmaRoc plc SigmaRoc ANNUAL RESULTS 2022
Slide 27: Positive demand outlook with diversified end-markets
Outlook Positive demand outlook with diversified end-markets STRATEGY IN PLACE TO DELIVER ORGANIC GROWTH Clear set of strategic priorities supporting sustainable organic growth, robust margins, strong cash generation and expanding ROIC. VIGILANCE TOWARDS END-MARKETS The Group remains vigilant toward
Slide 28: Appendix
SigmaRoc PLC Appendix +44 207 129 78 28 info@sigmaroc.com SigmaRoc ANNUAL RESULTS 2022
Slide 29: Financial performance
Appendix Financial performance REVENUE UNDERLYING EBITDA (million GBP) (million GBP) 2022 £538 m +98% 2022 £102 m +106% 2021 £272 m +119% 2021 £49 m +104% 2020 £124 m +77% 2020 £24 m +64% 2019 £70 m +71% 2019 £15 m +48% 2018 £41 m 2018 £10 m UNDERLYING EPS ADJUSTED LEVERAGE RATIO (pence) 2022 8.0 p
Slide 30: Core product volumes
Appendix Core product volumes AGGREGATES DIMENSION STONE QUICKLIME (thousand tonnes) (tonnes) (tonnes) 2022 14,908 2022 99630 2022 721,800 2021 6,350 2021 94232 2021 274,984 2020 3,111 2020 83279 2020 2019 1,783 2019 970 2019 2018 239 2018 150 2018 ASPHALT & CONTRACTING SERVICES READY-MIX & CONCRETE
Slide 31: Key assets
Appendix Key assets RESERVES AND RESOURCES TOTAL ASSETS (tonnes) (million GBP) 2022 1,599.6 m +20% 2022 906 m +18% 2021 1,335.1 m +263% 2021 769 m +199% 2020 374.5 m -1% 2020 257 m +24% 2019 378.5 m +2781% 2019 208 m +147% 2018 13.3 m 2018 84 m OPERATIONAL SITES PERSONNEL 2022 84 +11% 2022 2,009 +8%
Slide 32: Net Zero Roadmap with further detail in ESG report
Appendix Net Zero Roadmap with further detail in ESG report 2025 All concrete products available in low carbon and 2027 ultra-low carbon 100% utilization of all production materials 2030 Carbon Capture Alternative fuels used Storage and mobile equipment utilisation trial plant operational 2032 2.5%